Hi, I have fixed my problem. 
First, I must state that I upgraded from feisty. It was not a new installation.
I deleted the directory .gconf/system/networking from my home directory. This 
is what seemed to be causing the problem. 
And then make sure the /etc/network/interfaces file has

auto lo
iface lo inet loopback

iface wlan0 inet static #using a static address
address 192.168.1.10
netmask 255.255.255.0
gateway 192.168.1.1
wireless-key s:your password for wep key (ascii)
wireless-essid your network essid name
auto wlan0

You still get the rc80211_simple errors as above in dmesg but the
ra61pci module is still loaded.

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bug wifi rt61 gutsy
https://bugs.launchpad.net/bugs/144239
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